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Glomac Bhd (XKLS:5020) Degree of Financial Leverage : 4.65 (As of Jan. 2025)


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What is Glomac Bhd Degree of Financial Leverage?

Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Glomac Bhd's Degree of Financial Leverage for the quarter that ended in Jan. 2025 was 4.65. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Glomac Bhd's Degree of Financial Leverage or its related term are showing as below:

XKLS:5020's Degree of Financial Leverage is ranked worse than
93.5% of 1708 companies
in the Real Estate industry
Industry Median: 0.96 vs XKLS:5020: 4.65

Glomac Bhd Degree of Financial Leverage Historical Data

The historical data trend for Glomac Bhd's Degree of Financial Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Glomac Bhd Degree of Financial Leverage Chart

Glomac Bhd Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.35 1.61 -14.98 1.62 1.10

Glomac Bhd Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
Degree of Financial Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.45 1.10 0.70 2.35 4.65

Competitive Comparison of Glomac Bhd's Degree of Financial Leverage

For the Real Estate - Diversified subindustry, Glomac Bhd's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Glomac Bhd's Degree of Financial Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Glomac Bhd's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Glomac Bhd's Degree of Financial Leverage falls into.


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Glomac Bhd Degree of Financial Leverage Calculation

Glomac Bhd's Degree of Financial Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.038 (Jan. 2025) / 0.029 (Jan. 2024) - 1 )/( 59.765 (Jan. 2025) / 56.025 (Jan. 2024) - 1 )
=0.3103/0.0668
=4.65***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Glomac Bhd  (XKLS:5020) Degree of Financial Leverage Explanation

Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.

The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.

Be Aware

The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.


Glomac Bhd Degree of Financial Leverage Related Terms

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Glomac Bhd Business Description

Industry
Traded in Other Exchanges
N/A
Address
Glomac Damansara, Level 15, Menara Glomac, Jalan Damansara, Kuala Lumpur, SGR, MYS, 60000
Glomac Bhd is a real estate development company. It is engaged in property development, construction of buildings, and property investment. The firm is organized into three areas of business. The Property development segment includes the development of residential land and commercial properties for sale and sale of land; Construction includes the construction of buildings, and Property investment includes the investment of land and buildings held for investment potential and rental income in the future. It derives the majority of its revenues from the property development segment. The group geographically operates and derives its income in Malaysia.

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